Small Businesses' Top Concern: ObamaCare

July 18, 2013

The U.S. Chamber of Commerce's latest quarterly small business survey finds that Washington policies continue to hamper hiring and growth, with over a quarter of small businesses saying they have lost employees in the last year.

Key findings include:

The health care law is a top concern.

  • Concern about ObamaCare has increased by 10-points since June 2011 and by 4 points since last quarter.
  • Seventy-one percent of small businesses say the health care law makes it harder to hire.
  • Only 30 percent say they are prepared for the requirements of the law, including participation in the health insurance marketplaces.
  • Among small businesses that will be impacted by the employer mandate to provide health insurance for employees, one-half of small businesses say that they will either cut hours to reduce full-time employees or replace full-time employees with part-time workers to avoid the mandate. Twenty-four percent say they will reduce hiring to stay under 50 employees.

Small businesses are looking for legislative solutions, not more regulation.

  • Concerns about regulation have increased significantly from 35 percent last quarter to 42 percent now.
  • Small businesses are looking for leadership on issues that will remove barriers and encourage growth.
  • Eighty-eight percent of all small businesses support addressing entitlement spending to resolve America's growing financial challenges and escalating debt.
  • Eighty-three percent support congressional efforts to reform the tax code -- with the majority focusing on making it less complex.
  • In contrast to the president's recent speech pushing new energy regulations, 90 percent of small businesses support easing Environmental Protection Agency regulations and opening up more federal lands for drilling.

The only thing that scares small businesses more than what Washington has already done (23 percent) is what the federal government will do next (63 percent).

Source: "U.S. Chamber of Commerce Q2 2013 Small Business Survey," U.S. Chamber of Commerce, July 2013.

 

Browse more articles on Economic Issues